EU Committee Backs Emission Trading Exception List

Law360, New York (November 4, 2009, 12:31 PM EST) -- A European Parliament committee on Wednesday threw its support behind a proposal that would allow industries — such as mining and manufacturing — that might leave the European Union to escape recently tightened carbon dioxide emission trading rules to continue to receive their allowances for free until 2020.

The Environment Committee rejected a challenge to the European Commission's list of industries eligible for the extended free allowances in an effort to stop "carbon leakage" resulting from industries moving to other countries with more relaxed climate policies,...